Edmonton MP seeks to stiffen rules for Alberta pension plan

Private member’s bill would require other provinces to give their blessing

An Edmonton New Democrat MP is pitching a private member’s bill that would that would require a province to get the consent of other provinces before withdrawing from the Canada Pension Plan (CPP).

Edmonton-strathcona MP Heather Mcpherson introduced Bill C-387: An Act to amend the Canada Pension Plan in the House of Commons on April 30.

It suggests amending the Canada Pension Plan Act to require any province looking to leave the CPP to secure the approval of the governments of two-thirds of provinces, excluding Quebec, that together represent two-thirds of the population.

“Once provinces choose to leave the CPP, it weakens it,” Mcpherson said. “It’s very easy to break it one brick at a time.”

Currently, pension legislation sets out three requirements for a province looking to exit the CPP: 1)Give three years’ notice of its plan to withdraw from the CPP 2)Enact legislation that takes force within one year of that notice 3)Have the new provincial plan recognized by the governor general on the advice of cabinet as being comparable to the CPP

Mcpherson said a tougher standard is needed to protect those who have paid into the CPP in other provinces and who could face steeper premiums or reduced benefits should Alberta, or any other province, leave the program.

“All Canadians who are depending on this highly regarded pension plan to have a dignified retirement will start to see a CPP that doesn’t exist anymore.”

The bill comes as Alberta continues to pursue forming its own pension plan.

The province is waiting on a report expected in the fall from the office of the chief actuary that will outline what Alberta’s asset withdrawal from the CPP would be should it choose to leave.

The Alberta government has stonewalled Postmedia’s repeated efforts to secure the results of the pension engagement survey. Other polling data and public feedback to the government indicates leaving the CPP is generally an unpopular prospect to Albertans.

Pension engagement panel chair Jim Dinning said in December about half of the feedback gathered by the panel had been opposed to leaving the CPP.

Prime Minister Justin Trudeau, Opposition Leader Pierre Poilievre, and NDP leader Jagmeet Singh have all spoken out against Alberta leaving the CPP, while the Bloc Quebecois has reiterated Alberta’s right to do so, should it meet the current legislation’s requirements.

That support could, in theory, be sufficient to see the bill pushed through, though Mcpherson acknowledged it is a long shot.

“If the government is willing to take this on, I’d be more than happy.”